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Owner Sell Leased Property after Contract has Commenced?

Discussion in 'Property Law Forum' started by Tasha W, 22 April 2014.

  1. Tasha W

    Tasha W Member

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    Hi,

    I have a question about our lease contract. This leased property was subleased by the previous tenant to me. They need to leave Australia for visa reasons and I took over the lease. But my condition to take over the lease was that I'd be given at least 12 months to rent it. That was one of my conditions because I knew that the owner may have plans of selling the property and I was already ready to move out and rent another property.

    They assured me that I will be given at least 12 months and the owner said if ever they will decide to sell the property, they will let me know first so in case my situation improves, they will give me priority to submit my offer to buy before they open it to the market. Then the owner followed by saying that their decision to sell the house would surely not happen within this year.

    After a month of taking over the lease, the owner put a for sale sign in front of the leased property. All the verbal discussions were ignored.

    What if the leased property be sold soon and the buyer want us to leave the premises because they will occupy the house? Can my lease contract win over that?

    Please guide me. Thanks!
     
  2. Denise I

    Denise I Active Member

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    Hi Tasha,

    Your 12-month lease must be respected. Even if the buyer goes to Tribunal, they cannot kick you out.

    You can refer to this: http://www.tenanthelp.com.au/sa/Fixedtermtenancy/

    You can also call housingSA to confirm.

    Hope this helps.
     
  3. John R

    John R Well-Known Member

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    Hi Tasha,
    Denise's link only applies for SA but the principle is the same in most parts of Australia. That is, if you, as a tenant, are on a fixed term agreement (in contrast to a periodic/month-by-month, etc. agreement), then the lessor/owner can't make you leave because they've decided to sell the property. You are generally entitled to stay until the end of your fixed term. If the property sells, the new owner will become your lessor. To provide better information, which state/territory is the property in?
     
  4. Tasha W

    Tasha W Member

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    Thanks Denise/John! The property is in WA. Great to hear I wont be forced to leave!
     

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